The £333m abrdn Asian Income fund has revamped its dividend policy and introduced regular continuation votes.
The investment trust’s new annual dividend policy will see annual payouts of 6.25% of average net asset value, applied from the start of the 2025 financial year.
Based on NAV at the end of 2024, the dividend policy equates to a notional annual yield of 7.1%, based on its 222p share price.
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In a stock exchange announcement, the trust’s board said the move aims to narrow the trust’s 12% discount over time by broadening the appeal of its shares.
abrdn Asian Income has also introduced continuation votes, which will see shareholders vote on the trust’s future at three year intervals. The first vote will be held in 2028.
Meanwhile, an 6.78p interim dividend was announced for the fourth quarter, bringing the total for 2024 to 14.43p per ordinary share.
Ian Cadby, who chairs the trust’s board, said: “The board is delighted to deliver another year of increased dividends for our shareholders, reflecting our commitment to providing a meaningful and sustainable income.
“The Asia Pacific region continues to emerge as one of the most dynamic sources of dividends globally, offering a compelling blend of growth and income potential. With our enhanced dividend policy, we are poised to capitalise on these robust opportunities while adapting to shareholders’ needs in today’s high-interest rate environment.
“The introduction of a continuation vote further underscores our dedication to transparency and shareholder empowerment. We are confident in the long-term resilience and growth of the asset class, and staying true to our disciplined investment strategy should ensure strong and consistent returns for our investors.”